The team that is ranked 4 is 8-6, so you should really just be concerned with the 7-7 teams who take up seeds 5-8...
For them, you have Rotary, Penn, Morgantown and Legen tied at 7-7, 4 teams, vying for 2 spots...
Your league rules are:
Best head-to-head record
Best division record (same division only)
Most average points/game
Hardest schedule (record)
Hardest schedule (points)
H2H tiebreaker is skipped when there is no sweeps and when 3+ teams are tied and there are no sweeps or no team was swept by the rest. This does not happen here.
So your next breaker, best division record is taken into account.
Basically Legen at 3-7 in the division and Morgantown at 4-6 in the division are up against Penn who is 5-5 in the division (Rotary is in their own division)... The teams with the worse division record are knocked back here in this breaker.
So then Penn goes up against Rotary, and Penn lost, thereby putting Rotary in.
The three teams in the same division are left and because there are still no sweeps, Penn advances on division record.